Estonian e-residency

  • E-residency does not have any direct influence on the tax residency. Being an Estonian e-resident does not mean that you become an Estonian tax resident. Personal taxes need to be paid where you live. According to Estonian law, to become resident in Estonia, you need to live here for at least 183 consecutive days over 12 consecutive months.
  • Same international tax rules apply to all non-residents whether they are e-residents or not.
  • When a non-resident decides to establish a company in Estonia, the company is automatically a tax resident here, according to Estonian law. It is then the company´s duty to pay taxes in other countries according to their law if the source of taxable income is there. Estonia has already signed 57 treaties for the avoidance of double taxation, which includes all EU member states and most OECD member states.
  • Corporate income tax needs to be paid where the value is generated. If your company has a strong presence in one country then this will be simple to determine, but if your company is operating across multiple countries then you will likely need help from a qualified tax adviser that can look at your unique situation.You can find more information in this article : https://medium.com/e-residency-blog/how-do-e-residents-pay-taxes-73b8c96902b6
  • For any further questions, you can also contact nonresident@emta.ee.
  • Nevertheless, we strongly advise our e-residents to contact a qualified tax adviser.
  • E-Residency is definitely not a way to avoid paying taxes. Fortunately that doesn’t actually disappoint many entrepreneurs who would rather have the opportunity to build a more successful and trusted company that can more easily conduct business globally.